Maran to infuse another Rs100 cr in SpiceJet
03 March 2012
SpiceJet promoter Kalanithi Maran will infuse about Rs100 crore equity in the airline, bringing his stake up by five per cent to 48.59 per cent.
This is the second equity infusion by Maran in five months, and comes a month after its auditor raised concerns about the airline's eroding net worth. In September last year, Maran infused Rs130 crore into SpiceJet (See: Maran to raise stake in SpiceJet to 43 % by October).
The company announced in a board meeting on Friday that it has decided to allot 429 lakh equity shares to Kalanithi Maran, amounting to a 5 per cent stake.
Neil Mills, the chief executive of SpiceJet, said the money will be used for working capital and to fund growth.
"Today our board met and decided to allot 42.9 million preferential shares or five per cent to the promoters which is worth Rs100 crore. This will take the overall holding of promoters in the airline to 48.6 per cent," SpiceJet chief executive Mills said in New Delhi.
The fresh equity infusion comes at a time when rival Kingfisher Airline is struggling to stay airborne due to a severe cash crunch. Kingfisher's promoter Vijay Mallya is finding it difficult to raise fresh equity, a precondition his debtors have set before considering any fresh lending to the carrier.